Archive · 22 Jul 2026
India's Debt-to-GDP Ratio Drops to 58.2% in FY26
India's debt-to-GDP ratio has improved to 58.2% in the financial year 2026, down from 58.5% the previous year.
The total debt of the central government is Rs 201.17 lakh crore.
The government has been able to reduce the ratio of debt service to revenue receipts from 41.6% in 2020-21 to 37.6% in 2025-26.
This shows that the government is using its borrowings to create assets, as the capital expenditure is higher than the fiscal deficit.
However, the debt burden is projected to rise to Rs 228.27 lakh crore in FY27, raising concerns about long-term fiscal sustainability.
India's debt-to-GDP ratio has decreased to 58.2% in FY26.
Total debt of the central government is Rs 201.17 lakh crore.
Debt service ratio has declined from 41.6% in 2020-21 to 37.6% in 2025-26.
Capital expenditure in BE 2026-27 is Rs 17.15 lakh crore, higher than the fiscal deficit of Rs 16.96 lakh crore.
Projected debt burden for FY27 is Rs 228.27 lakh crore.
- Who
- Minister of State for Finance Pankaj Chaudhary
- What
- India's debt-to-GDP ratio has decreased to 58.2% in FY26.
- When
- As of March 31, 2026
- Where
- New Delhi
- Why
- Due to effective debt management and increased capital expenditure.
Government's Fiscal Responsibility
Concerns Over Rising Debt
Debt Management
Government's Fiscal Responsibility
The government has effectively managed debt by using borrowings for capital expenditure, indicating fiscal responsibility.
Concerns Over Rising Debt
The rising debt burden raises concerns about long-term fiscal sustainability and economic stability.
- Debt-to-GDP Ratio (FY26)
- 58.2%
- Total Debt (FY26)
- Rs 201.17 lakh crore
- Debt Service Ratio (2020-21)
- 41.6%
- Debt Service Ratio (2025-26)
- 37.6%
- Capital Expenditure (BE 2026-27)
- Rs 17.15 lakh crore
- Fiscal Deficit (BE 2026-27)
- Rs 16.96 lakh crore
- Projected Debt (FY27)
- Rs 228.27 lakh crore
- Capital Expenditure (FY21-FY26)
- Rs 44.03 lakh crore